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A SOLICITOR has been suspended for two years after he told a disciplinary inquiry he put his own savings into his firm's client account to benefit from a higher interest rate.

Jonathan Michael Duff claimed the money was 'never mixed' with that belonging to his clients and when he realised what he had done was in breach of professional accounts rules, he stopped doing this.

Duff, 42, of Hatchmere Wood, Delamere Road, Norley, faced a string of allegations at the Solicitors Disciplinary Tribunal on Tuesday of breaches of accounts rules and was alleged to be guilty of conduct unbefitting a solicitor.

Giving evidence, investigating accountant Sean Hankin who visited the firm Drummonds at Windsor House in Pepper Street, Chester, in August 2000, said sole equity partner Duff's broad obligations were to assist him by providing the books of account, client listings and other documents, as well as explaining things to him if necessary.

Mr Hankin needed to see documents covering a six year period to satisfy himself there had been 'compliance' with the solicitors' accounts rules. He claimed he was told this was not a problem for recent documents but 'historical data' was stored elsewhere 'Certain information did come back from the storage sites but it was not what I requested,' said Mr Hankin. He alleged he never got what he wanted to see of this material.

The tribunal heard Duff told the accountant about a client ledger called 'Sand's', described as a 'tess' account which had his money in it.

More than £126,000 had passed through that account in a few months.

Mr Hankin said he sometimes came across a partner with money in client account but he would expect the ledger to be in the partner's name.

He added: 'It is the first time I have seen a false name given to that sort of ledger.' He also referred to 'misleading narrative' in the ledger.

The tribunal heard there were also other client ledgers which caused Mr Hankin concern.

Duff admitted failing to produce books and other documents to the accountant. He also admitted, in respect of one matter, that he put into a client account monies other than those permitted by the rules.

Duff also faces allegations that he withdrew money from client accounts in breach of the rules, failed to disclose to clients with complete frankness circumstances in which he would or may obtain a personal benefit and failed to account to a client for commission.

It was also alleged Duff had compromised or impaired his integrity after he created a fictitious account.

Mr Duff said the firm's account had been a test ledger when the firm set up computerised accounts in l994. 'It was not until 1997, I put my own savings in it in breach of the rules for which I apologise.'

The solicitor added: 'I used Mr Sand to simply put in my own savings, nobody else's money.' He accepted this was in breach of the rules.

'I did not know it at the time and as soon as I knew it was, I shut it.'

Asked by David Barton, for the Law Society, if he was aware of the prohibition on a solicitor mixing his own money with clients', Duff replied: 'I did not mix it, it stayed separate in a general client account.'

The solicitor revealed he had savings in the Isle of Man at the time where the interest was not as high as on client accounts.

'I put it into client account to benefit from a better interest rate. I was not aware it was in breach of accounting rules until the July, when I stopped it.'

He claimed the money was only in the ledger between February and July 1997.

He said the money coming in and out of the account represented funds from a couple of racing cars he sold ­ motor racing is a hobby of his.

Andrew Lockley, for Duff, told the tribunal the firm had experienced problems with their previous accounts system which meant they were having to recreate client ledgers at the time of the inspection.

Mr Lockley added files were also being retrieved from storage but destroyed by the firm's book-keeper on their return as he believed they would disclose his own dishonest actions.

The tribunal found the allegations proved but cleared Duff of dishonesty.

Announcing the tribunal's decision to suspend for two years Duff, who is married with three young children, chairman Laurence Gilford said: 'There are a number of allegations which have been proved and they are, in reality, quite serious because they go to the respondent's attitude to the running of his practice.'

The tribunal also ordered Duff to pay costs to be assessed unless agreed.